DRiV™ Forms Strategic Partnership with New Carzone, China
June 25, 2019
NANJING, China, June 25, 2019 /PRNewswire/ -- DRiV™, a Tenneco Inc. (NYSE: TEN) business and leading global aftermarket and ride performance supplier and New Carzone, the leading China aftermarket channel and retail service company, have signed a strategic cooperation agreement to further expand both companies' businesses in the China aftermarket.
This unique cooperation is built upon the acceleration of consumer demand for quality aftermarket products and diversified services in the automobile maintenance market. It will cover many areas including brands, products, technologies and service resources, and leverage web-based platforms to provide a full-range of products and complete service solutions to repair shops. As two leading enterprises in the aftermarket industry, DRiV and New Carzone are committed to bringing superior service and technical support to repair shops.
"With the continuous development and upgrade of the automotive aftermarket, we see huge potential for cooperation between parts suppliers, service networks and internet platform providers," said Brian Kesseler, CEO, DRiV. "We are extremely excited about our strategic partnership with New Carzone and strongly believe the combination of our strengths will enable both parties to grow by supporting the development of the aftermarket in China."
Shang Baoguo, co-founder and CEO, New Carzone, said: "We value the cooperation with DRiV. The establishment of a long-lasting friendship and strategic cooperation will help to further enhance product quality and provide strong support for the automotive maintenance needs of Chinese consumers. Ultimately this relationship should help expand the reach of both New Carzone and DRiV and promote the healthy development of the industry."
Jay Kunkel, executive vice president, DRiV Asia Pacific, said: "New Carzone is one of the most important DRiV customers in the Asia Pacific region and this strategic cooperation will enable us to work more closely together to achieve our common growth goals."
Edward Hang, vice president and general manager, China Aftermarket, DRiV and Mr. Baoguo signed the strategic cooperation agreement on behalf of both parties. Representatives from both companies witnessed the ceremony.
About DRiV™ - the future Aftermarket and Ride Performance Company
Following Tenneco Inc.'s (NYSE: TEN) expected separation to form two new, independent companies, an Aftermarket and Ride Performance company (DRiV™) as well as a new Powertrain Technology company, DRiV will be one of the largest global multi-line, multi-brand aftermarket companies, and one of the largest global OE ride performance and braking companies. DRiV's principal product brands will feature Monroe®, Öhlins® Walker®, Clevite® Elastomers, MOOG®, Fel-Pro®, Wagner®, Ferodo®, Champion® and others. DRiV would have 2018 pro-forma revenues of $6.4 billion, with 54% of those revenues from aftermarket and 46% from original equipment customers.
About New Carzone
New Carzone is a professional aftermarket integrated service provider dedicated to covering the whole country. It was formed by Alibaba, Carzone and ACCR ("Qiche Chaoren") based on Carzone's leading auto supply chain operation in China. Combined with Alibaba's existing auto parts business and market resource, it received hundreds of millions of dollars' investments from institutions such as Alibaba, Warburg Pincus, Yunfeng Fund, PAG investment and US Goldman Sachs. At present, the company has set up more than 800 outlets nationwide, and plans to reach 2,000 outlets by the end of 2020 to ensure "30 minutes" delivery.
This release contains forward-looking statements. These forward-looking statements include, among others, statements relating to our plans to separate into two independent public companies. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to materially differ from those described in the forward-looking statements, including the possibility that Tenneco may not complete the spin-off of the Aftermarket & Ride Performance business from the Powertrain Technology business (or achieve some or all of the anticipated benefits of such a spin-off); the possibility that the acquisition of Federal-Mogul or the separation may have an adverse impact on existing arrangements with Tenneco, including those related to transition, manufacturing and supply services and tax matters; the ability to retain and hire key personnel and maintain relationships with customers, suppliers or other business partners; the risk that the benefits of the acquisition of Federal-Mogul or the separation, including synergies, may not be fully realized or may take longer to realize than expected; the risk that the acquisition of Federal-Mogul or the separation may not advance Tenneco's business strategy; the risk that Tenneco may experience difficulty integrating all employees or operations; the potential diversion of Tenneco management's attention resulting from the separation; as well as the risk factors and cautionary statements included in Tenneco's periodic and current reports (Forms 10-K, 10-Q and 8-K) filed from time to time with the SEC. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Unless otherwise indicated, the forward-looking statements in this release are made as of the date of this communication, and, except as required by law, Tenneco does not undertake any obligation, and disclaims any obligation, to publicly disclose revisions or updates to any forward-looking statements. Additional information regarding these risk factors and uncertainties is detailed from time to time in the company's SEC filings, including but not limited to its annual report on Form 10-K for the year ended December 31, 2018.
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SOURCE Tenneco Inc.